California Withholding Tax




What is California Withholding Tax?

Withholding tax is the amount of employee’s pay withheld by the employer and sent directly to the government as partial payment of state income tax.  The amount of withholding tax depends on employee’s income.  The California state income tax is between 1.0%-12.3%. Therefore, the withholding tax should be similar to the state income tax range.

Employees do not need to take any action.  The employers/businesses will need to deduct the withholding tax from employee’s paycheck and submit and file the withholding tax to California Dept of Revenue.

How much is California Withholding Tax?

Since California withholding tax withheld is used to pay for employee’s California state income tax, the withholding tax should correlate with state income tax bracket.  The California state income tax rate ranges from 1.0% to 12.3%.  The withholding tax should be within the state income tax rate range.

State Year  State Income Tax Rate Withholding Tax Rate
California 2015 1%-12.3% 1%-12.3%

How to File California Withholding Tax?

Employees do not need to do anything.

Employers/Businesses need to register withholding tax account with California Department of Revenue.  Depending the size of the company, every three months, the employers have to file a quarterly withholding reports and submit withholding tax to the Department of Revenue.  Most small businesses need to file quarterly while larger businesses need to file more frequently.

California Withholding Tax Forms

Form Number Form Description
Form DE-4  Withholding Certificate
Form DE-9  Withholding Tax Return
Form DE-1 Withholding Tax Registration

How to Register for California Withholding Tax?

Businesses with employees will need to register for California Withholding account. The easiest and fastest way to register for Withholding tax is online.

Click here to register for California Withholding Tax.

When to File and Deadlines for California Withholding Tax Return

Generally, California Withholding Tax returns have to be filed every three months, ending on March 31 (Q1), June 30 (Q2), September 30 (Q3) and December 31 (Q4). Typically, the deadline to mail California Withholding Tax return is the last day of the following month.

Quarter Months Deadline
Q1 January - March April 30
Q2 April - June July 31
Q3 July - September October 31
Q4 October - December January 31

California CA Withholding Tax Contacts and Address:

For more information or help on California Withholding Tax, please use the contact information below

Website California Economic Development Department
Telephone 916-464-3502
Address Employment Development Department
P.O. Box 826880
Sacramento  CA 94280-0001

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